An automobile manufacturing company in Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their

MARRequals=2323%

per year on a before-tax basis.

(This

is a market rate relative to their currency in Country

X.)

The study period used by the company for this type of investment is

1212

years. The currency in Country X is the Z-Kron. It is estimated that the U.S. dollar will become weaker relative to the Z-Kron during the next

1212

years. Specifically, the dollar is estimated to be devalued at an average rate of

3.73.7%

per year. The present exchange rate is 92 Z-Krons per U.S. dollar. The estimated before-tax net cash flow (in U.S. dollars) is given in the table below. Based on a before-tax analysis, will this project meet the company's economic decision criterion?

An automobile manufacturing company in Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their MARR 23% per year on a before-tax basis. (This is a market rate relative to their currency in Country X) The study period used by the company for this type of investment is 12 years. The currency in Country X is the Z-Kron. It is estimated that the US. dollar will become weaker relative to the Z Kron during the next 12 years Spec fica y the dollar is estimated to be devalued at an average rate of 3.7% per year. The present exchange rate is 92 Z Krons per U S dollar. The estimated before tax net cash flow (in US dollars) is given in the table below. Based on a before-tax analysis, will this project meet the company's economic decision criterion? EOY Net Cash Flow (U.S. Dollars) - 196,000,000 25,000,000 76,000,000 76,000,000 12 The PW of net cash flows is $15355028 million, thus the project will meet the company's economic decision criteria. (Round to two decimal places.) An automobile manufacturing company in Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their MARR 23% per year on a before-tax basis. (This is a market rate relative to their currency in Country X) The study period used by the company for this type of investment is 12 years. The currency in Country X is the Z-Kron. It is estimated that the US. dollar will become weaker relative to the Z Kron during the next 12 years Spec fica y the dollar is estimated to be devalued at an average rate of 3.7% per year. The present exchange rate is 92 Z Krons per U S dollar. The estimated before tax net cash flow (in US dollars) is given in the table below. Based on a before-tax analysis, will this project meet the company's economic decision criterion? EOY Net Cash Flow (U.S. Dollars) - 196,000,000 25,000,000 76,000,000 76,000,000 12 The PW of net cash flows is $15355028 million, thus the project will meet the company's economic decision criteria. (Round to two decimal places.)